Nisaab of Zakaath on Wealth decreased

The nisaab of zakaath on wealth has decreased in comparison with the rates applied in 2023.

Nisaab is the financial threshold or minimum amount of wealth that a muslim must possess before being obligated to pay zakaath.

The Ministry of Islamic Affairs announced that decided as per their standards of specifying a nisaab value, the nisaab for paying zakaath on wealth in Maldives is MVR 7140 from Thursday onwards.

Nisaab was changed twice within 2023. The amount was last at MVR 7312.55 as announced in May last year.

Islam obligates persons who reach the required financial threshold to pay zakaath on wealth. The amount of zakaath that must be payed in such instances is 2.5% of net wealth that the person holds for a year.

The nisaab amount changes based on the price of silver and gold in the global markets. The ministry has previously quoted scholars as saying that basing nisaab on the price of silver is the most beneficial option for the poor in small countries like the Maldives.

While the ministry has not yet announced the total amount received in 2023 as zakath on wealth, they distributed MVR 26.8 million from these funds in July last year.

With the amount being distributed to the 7657 persons registered as impoverished in the Maldives, this amounts to each recipient having being granted MVR 3500.

The government has established a separate institution for handling matters related to zakath, named the Zakath House. The purpose of this institute is to work towards enhancing the amount of zakath currently being contributed by various individuals and to expand the scope of work carried out through zakat, among other responsibilities.